Real Estate
If you’re thinking about buying a home, you want to know the decision will be a good one. And for many, that means thinking about what home prices are projected to do in the coming years and how that could impact your investment.
This year, we aren’t seeing home prices fall dramatically. As the year goes on, however, some markets may go up in value while others may lose value. That’s why it’s helpful to keep the long-term view in mind. Experts project a return to a steadier rate of price appreciation in the years that follow.
Over 100 economists, investment strategists, and housing market analysts were polled by Pulsenomics in their latest quarterly Home Price Expectation Survey (HPES). The report indicates what they believe will happen with home prices over the next five years. As the graph below shows, after mild depreciation this year, these experts forecast home prices will return to more normal levels of appreciation through 2027.
The big takeaway is experts aren’t forecasting a drastic fall in home prices nationally, even though some markets will see home price appreciation while others may depreciate. And when they look further out, they see steady price appreciation in the long run. That’s a great example of why homeownership wins over time.
Once you buy a home, price appreciation raises your home’s value, and that grows your household wealth. Here’s how a typical home’s value could change over the next few years using the expert price appreciation projections from the survey mentioned above (see graph below):
In this example, if you bought a $400,000 home at the beginning of this year and factor in the forecast from the HPES, you could accumulate over $54,000 in household wealth over the next five years. So, if you’re wondering if buying a home is a sound decision, keep in mind what a strong wealth-building tool it is long term.
According to the experts, while we may see slight depreciation this year, home prices are expected to grow over the next five years. If you’re ready to become a homeowner, know that buying today can set you up for long-term success as home values (and your own net worth) are projected to grow.
Get in touch with us to begin your homebuying process today.
Stay up to date on the latest real estate trends.
Los Altos, nestled in the heart of Silicon Valley, offers a blend of suburban tranquility and natural beauty. For outdoor enthusiasts, the area boasts numerous hiking … Read more
After the election of Donald J. Trump, bond prices increased in anticipation of his inflationary policy positions. Interest rates are the most significant factor finan… Read more
Let’s talk about property taxes in California—a topic that often raises a few eyebrows and sometimes even a touch of confusion. But don’t worry; we’re going to break i… Read more
Explore Palo Alto’s incredible culinary scene with our guide to the best restaurants. Each place offers a unique experience, from the ambiance to the flavors that make… Read more
Moving to Los Altos offers more than just a beautiful place to live; it opens up a world of exciting dining. I’ll walk you through the top 10 restaurants that truly ma… Read more
Enough data has been released to suggest that home prices peaked nationally in June 2024, and won’t peak again this year. Of course, there will be deviations in local … Read more
You’ve got questions and we can’t wait to answer them.